Closed drop down of remaining 25% interest in NRG Wind TE Holdco to
NRG Yield; offered 38 MW portfolio of distributed and small
utility-scale solar assets to NRG Yield; offered NRG Yield the
opportunity to form a new distributed solar partnership

Reached agreement with creditors to restructure GenOn Energy, Inc.
and its subsidiaries through consensual bankruptcy process

PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 3, 2017--
NRG Energy, Inc. (NYSE:NRG) today reported second quarter income from
continuing operations of $99 million. The loss from continuing
operations for the first six months in 2017 of $70 million, or $0.05 per
diluted common share, compared to a loss from continuing operations of
$220 million, or $0.34 per diluted common share for the first six months
in 2016. Adjusted EBITDA for the three and six months ended June 30,
2017, was $685 million and $1,071 million, respectively. Year-to-date
cash from continuing operations totaled $112 million.

“NRG delivered another quarter of solid operational and financial
performance,” said Mauricio Gutierrez, NRG President and Chief Executive
Officer. “We are fully engaged in implementing the Transformation Plan
we announced in July that will enhance our leading integrated platform,
provide a low-cost structure, and create a best-in-class balance sheet
needed to thrive in all market cycles.”

Consolidated Financial Results

GenOn's results are excluded from the results for three and six months
ended June 30, 2017 and for 2016 following the bankruptcy filing of
GenOn and certain of its subsidiaries on June 14, 2017. As a result, NRG
no longer consolidates GenOn and its subsidiaries for financial
reporting purposes.

Three Months Ended

Six Months Ended

($ in millions)

6/30/17

6/30/16

6/30/17

6/30/16

Income/(Loss) from Continuing Operations

$

99

$

(163

)

$

(70

)

$

(220

)

Cash From Continuing Operations

$

195

$

533

$

112

$

880

Adjusted EBITDA

$

685

$

698

$

1,071

$

1,339

Free Cash Flow Before Growth Investments (FCFbG)

$

240

$

209

$

208

$

259

Segment Results

Table 1: Income/(Loss) from Continuing Operations

($ in millions)

Three Months Ended

Six Months Ended

Segment

6/30/17

6/30/16

6/30/17

6/30/16

Generation

$

(90

)

$

(458

)

$

(56

)

$

(433

)

Retail

341

657

311

807

Renewables 1

(47

)

(71

)

(79

)

(111

)

NRG Yield 1

45

64

44

66

Corporate

(150

)

(355

)

(290

)

(549

)

Income/(Loss) from Continuing Operations 2

$

99

$

(163

)

$

(70

)

$

(220

)

1.In accordance with GAAP, 2016 results have been
restated to include full impact of the assets in the NRG Yield Drop Down
transactions which closed onSeptember 1, 2016, and March 27,
2017.

2.Includes mark-to-market gains and losses of economic
hedges.

Table 2: Adjusted EBITDA

($ in millions)

Three Months Ended

Six Months Ended

Segment

6/30/17

6/30/16

6/30/17

6/30/16

Generation 1

$

152

$

203

$

205

$

471

Retail

203

216

336

372

Renewables 2

56

33

82

65

NRG Yield 2

270

257

454

455

Corporate

4

(11

)

(6

)

(24

)

Adjusted EBITDA 3

$

685

$

698

$

1,071

$

1,339

1.Generation regional Reg G reconciliations are
included in Appendices A-1 through A-4.

2.In accordance with GAAP, 2016 results have been
restated to include full impact of the assets in the NRG Yield Drop Down
transactions, which closed onSeptember 1, 2016, and March
27, 2017.

Gulf Coast Region: $70 million decrease due primarily to lower
realized energy margins in Texas from lower hedged prices and higher
coal transportation costs, which was partially offset by lower
operating expenses in South Central

East/West1: $19 million increase following the distribution
from our Doga (Turkey) asset and favorable trading results in BETM

Retail: Second quarter Adjusted EBITDA was $203 million, $13
million lower than second quarter 2016 due primarily to lower margins
from mild weather and higher supply costs, which was partially offset by
customer growth and reduced operating costs.

Renewables: Second quarter Adjusted EBITDA was $56 million, $23
million higher than second quarter 2016 due to higher solar and wind
generation, and insurance recoveries at Ivanpah for property damage
incurred during 2016.

NRG Yield: Second quarter Adjusted EBITDA was $270 million, $13
million higher than second quarter 2016 due to the acquisition of the
Utah utility-scale solar assets, partially offset by a forced outage at
Walnut Creek.

Corporate: Second quarter Adjusted EBITDA was $4 million, $15
million higher than the second quarter 2016 due to the elimination of
operating losses at residential solar following its full wind down of
operations.

1 Includes International, BETM and generation eliminations.

Liquidity and Capital Resources

Table 3: Corporate Liquidity

($ in millions)

6/30/17

12/31/16

Cash at NRG-Level 1

$

514

$

570

Revolver Availability

1,497

989

NRG-Level Liquidity

$

2,011

$

1,559

Restricted Cash

469

446

Cash at Non-Guarantor Subsidiaries

238

368

Total Liquidity

$

2,718

$

2,373

1.Includes unrestricted cash held at Midwest Generation
(a non-guarantor subsidiary), which can be distributed to NRG without
limitation.

NRG-Level Cash as of June 30, 2017, was $514 million, a decrease of $56
million from December 31, 2016, and $1.5 billion was available under the
Company’s credit facilities at the end of the second quarter 2017. Total
liquidity was $2.7 billion, including restricted cash and cash at
non-guarantor subsidiaries (primarily NRG Yield).

NRG Strategic Developments

Transformation Plan

On July 12, 2017, NRG announced its Transformation Plan designed to
significantly strengthen earnings and cost competitiveness, lower risk
and volatility, and create significant shareholder value. The
three-part, three-year plan is comprised of the following targets:

Operations and cost excellence — Cost savings and margin
enhancement of $1,065 million recurring, which consists of $590 million
of annual cost savings, $215 million net margin enhancement program, $50
million annual reduction in maintenance capital expenditures, and $210
million in permanent SG&A reduction associated with asset sales.

Portfolio optimization — Targeting $2.5-$4.0 billion of asset
sale net cash proceeds, including divestitures of 6 GWs of conventional
generation and businesses (excluding GenOn) and the monetization of
50-100% of its interest in NRG Yield, Inc. and its renewables platform.

Capital structure and allocation — A prioritized capital
allocation strategy that targets a reduction in consolidated total (net)
debt from $19.5 billion ($18 billion, net) to $6.5 billion ($6 billion,
net). Following the completion of the contemplated asset sales, the
Company expects $4.8-$6.3 billion in excess cash to be available for
allocation through 2020 after achieving its targeted 3.0x net debt /
Adjusted EBITDA corporate credit ratio.

The Company expects to fully implement the Transformation Plan by the
end of 2020, with significant completion by the end of 2018. The plan
also expects to realize (i) $370 million non-recurring working capital
improvements through 2020 and (ii) approximately $290 million in
one-time costs to achieve.

The full Board of Directors will maintain oversight of the execution of
the Transformation Plan with monthly updates provided to the Board’s
Finance and Risk Management Committee. A scorecard will be provided to
the investment community and will be updated on future quarterly
earnings calls.

NRG Yield Drop Downs

On August 1, 2017, the Company closed on the sale of its remaining 25%
interest in NRG Wind TE Holdco, a portfolio of 12 wind projects, to NRG
Yield for total cash consideration of $41.5 million, excluding working
capital adjustments. The transaction also includes potential additional
payments to NRG dependent upon actual energy prices for merchant periods
beginning in 2027.

The Company offered NRG Yield a 38 MW portfolio of distributed and small
utility-scale solar assets, primarily comprised of assets from NRG's
Solar Power Partners (SPP) funds, in addition to other projects
developed since the acquisition of SPP. NRG’s interest in SPP is not
part of the ROFO Agreement.

In addition, NRG offered NRG Yield, Inc. the opportunity to form a new
distributed solar partnership enabling up to $50 million in investment
by NRG Yield, Inc.

GenOn Energy Chapter 11 Bankruptcy Filing

On June 12, 2017, NRG, GenOn and certain of its subsidiaries, and the ad
hoc group of Noteholders entered into a restructuring support agreement
(RSA). Pursuant to the RSA, on June 14, 2017, GenOn, GenOn Americas
Generation and certain of their directly and indirectly-owned
subsidiaries, (collectively the GenOn Entities) filed voluntary
petitions for relief under Chapter 11 of Title 11 of the U.S. Bankruptcy
Code, in the United States Bankruptcy Court for the Southern District of
Texas, Houston Division.

As a result of the bankruptcy filings and beginning on June 14, 2017,
GenOn and its subsidiaries were deconsolidated from NRG’s consolidated
financial statements. NRG has determined that this disposal of GenOn and
its subsidiaries is a discontinued operation; and, accordingly, the
financial information for all historical periods have been recast to
reflect GenOn as a discontinued operation. In connection with the
disposal, NRG has recorded a loss on disposal of $208 million during the
three months ended June 30, 2017.

2017 Guidance

After adjusting for the deconsolidation of GenOn and the impact of the
Transformation Plan on 2017 as announced on July 12, 2017, NRG is
reaffirming its guidance range for fiscal year 2017 with respect to both
Adjusted EBITDA and FCFbG.

1.Non-GAAP financial measure; see Appendix Tables A-1
through A-5 for GAAP Reconciliation to Net Income that excludes fair
value adjustments related to derivatives. The Company is unable to
provide guidance for Net Income due to the impact of such fair value
adjustments related to derivatives in a given year.

Capital Allocation Update

On July 20, 2017, NRG declared a quarterly dividend on the company's
common stock of $0.03 per share, payable August 15, 2017, to
stockholders of record as of August 1, 2017, representing $0.12 on an
annualized basis.

The Company’s common stock dividend, debt reduction and share
repurchases are subject to available capital, market conditions and
compliance with associated laws and regulations.

Earnings Conference Call

On August 3, 2017, NRG will host a conference call at 8:00 a.m. Eastern
to discuss these results. Investors, the news media and others may
access the live webcast of the conference call and accompanying
presentation materials by logging on to NRG’s website at http://www.nrg.com
and clicking on “Investors.” The webcast will be archived on the site
for those unable to listen in real time.

About NRG

NRG is the leading integrated power company in the U.S., built on the
strength of our diverse competitive electric generation portfolio and
leading retail electricity platform. A Fortune 500 company, NRG creates
value through best in class operations, reliable and efficient electric
generation, and a retail platform serving residential and commercial
businesses. Working with electricity customers, large and small, we
implement sustainable solutions for producing and managing energy,
developing smarter energy choices and delivering exceptional service as
our retail electricity providers serve almost three million residential
and commercial customers throughout the country. More information is
available at www.nrg.com.
Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.

Safe Harbor Disclosure

In addition to historical information, the information presented in this
communication includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Exchange Act. These statements involve estimates, expectations,
projections, goals, assumptions, known and unknown risks and
uncertainties and can typically be identified by terminology such as
“may,” “should,” “could,” “objective,” “projection,” “forecast,” “goal,”
“guidance,” “outlook,” “expect,” “intend,” “seek,” “plan,” “think,”
“anticipate,” “estimate,” “predict,” “target,” “potential” or “continue”
or the negative of these terms or other comparable terminology. Such
forward-looking statements include, but are not limited to, statements
about the Company’s future revenues, income, indebtedness, capital
structure, plans, expectations, objectives, projected financial
performance and/or business results and other future events, and views
of economic and market conditions.

Although NRG believes that its expectations are reasonable, it can give
no assurance that these expectations will prove to be correct, and
actual results may vary materially. Factors that could cause actual
results to differ materially from those contemplated herein include,
among others, general economic conditions, hazards customary in the
power industry, weather conditions, including wind and solar
performance, competition in wholesale power markets, the volatility of
energy and fuel prices, failure of customers to perform under contracts,
changes in the wholesale power markets, changes in government
regulations, the condition of capital markets generally, our ability to
access capital markets, unanticipated outages at our generation
facilities, adverse results in current and future litigation, failure to
identify, execute or successfully implement acquisitions, repowerings or
asset sales, our ability to implement value enhancing improvements to
plant operations and companywide processes, our ability to implement and
execute on our publicly announced transformation plan, including any
cost savings, margin enhancement, asset sale, and net debt targets, our
ability to proceed with projects under development or the inability to
complete the construction of such projects on schedule or within budget,
risks related to project siting, financing, construction, permitting,
government approvals and the negotiation of project development
agreements, our ability to progress development pipeline projects, the
timing or completion of the GenOn restructuring, the inability to
maintain or create successful partnering relationships, our ability to
operate our businesses efficiently, our ability to retain retail
customers, our ability to realize value through our commercial
operations strategy and the creation of NRG Yield, the ability to
successfully integrate businesses of acquired companies, our ability to
realize anticipated benefits of transactions (including expected cost
savings and other synergies) or the risk that anticipated benefits may
take longer to realize than expected, our ability to close the Drop Down
transactions with NRG Yield, and our ability to execute our Capital
Allocation Plan. Debt and share repurchases may be made from time to
time subject to market conditions and other factors, including as
permitted by United States securities laws. Furthermore, any common
stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. The adjusted EBITDA and free cash
flow guidance are estimates as of August 3, 2017. These estimates are
based on assumptions the company believed to be reasonable as of that
date. NRG disclaims any current intention to update such guidance,
except as required by law. The foregoing review of factors that could
cause NRG’s actual results to differ materially from those contemplated
in the forward-looking statements included in this presentation should
be considered in connection with information regarding risks and
uncertainties that may affect NRG's future results included in NRG's
filings with the Securities and Exchange Commission at www.sec.gov.

(d) Excludes loss on sale of business of $83 million, loss on debt
extinguishment of $69 million, impairments of $56 million, and
acquisition-related transaction & integration costs of $7 million.

The following table reconciles the condensed financial information to
Adjusted EBITDA:

($ in millions)

Condensedfinancialinformation

Interest, tax,depr. amort.

MtM

Deactivation

Other adj.

AdjustedEBITDA

Operating revenues

4,907

29

422

—

—

5,358

Cost of operations

2,252

(23

)

450

—

—

2,679

Gross margin

2,655

52

(28

)

—

—

2,679

Operations & maintenance andother cost of operations

1,019

—

—

(13

)

—

1,006

Selling, marketing, general &administrative (a)

520

(19

)

501

Other expense/(income) (b)

1,336

(1,961

)

—

—

458

(167

)

(Loss)/Income from ContinuingOperations

(220

)

2,013

(28

)

13

(439

)

1,339

(a) Other adj. includes reorganization costs of $19 million.

(a) Other adj. includes loss on sale of business of $83 million,
loss on debt extinguishment of $69 million, impairments of $56 million,
and acquisition-related transaction & integration costs of $7 million.

(1) For purposes of guidance, fair value adjustments related to
derivatives are assumed to be zero.

(2) Includes deactivation costs, gain on sale of businesses, asset
write-offs, impairments and other non-recurring charges.

Appendix Table A-8: 2017 FCFbG Guidance Reconciliation

The following table summarizes the calculation of Free Cash Flow before
Growth providing reconciliation to Cash from Operations:

2017

2017

($ in millions)

PriorGuidance

RevisedGuidance

Adjusted EBITDA

$2,700 - $2,900

$2,565 - $2,765

Cash Interest payments

(1,065

)

(825

)

Cash Income tax

(40

)

(40

)

Collateral / working capital / other

(240

)

60

Cash From Operations

$1,355 - $1,555

$1,760 - $1,960

Adjustments: Acquired Derivatives, Cost-to-Achieve, Return of
CapitalDividends, Collateral and Other

—

—

Adjusted Cash flow from operations

$1,355 - $1,555

$1,760 - $1,960

Maintenance capital expenditures, net

(280) - (310

)

(210) - (240

)

Environmental capital expenditures, net

(40) - (60

)

(25) - (45

)

Distributions to non-controlling interests

(185) - (205

)

(185) - (205

)

Free Cash Flow - before Growth Investments

$800 - $1,000

$1,290 - $1,490

EBITDA and Adjusted EBITDA are non-GAAP financial measures. These
measurements are not recognized in accordance with GAAP and should not
be viewed as an alternative to GAAP measures of performance. The
presentation of Adjusted EBITDA should not be construed as an inference
that NRG’s future results will be unaffected by unusual or non-recurring
items.

EBITDA represents net income before interest (including loss on debt
extinguishment), taxes, depreciation and amortization. EBITDA is
presented because NRG considers it an important supplemental measure of
its performance and believes debt-holders frequently use EBITDA to
analyze operating performance and debt service capacity. EBITDA has
limitations as an analytical tool, and you should not consider it in
isolation, or as a substitute for analysis of our operating results as
reported under GAAP. Some of these limitations are:

EBITDA does not reflect cash expenditures, or future requirements for
capital expenditures, or contractual commitments;

EBITDA does not reflect changes in, or cash requirements for, working
capital needs;

EBITDA does not reflect the significant interest expense, or the cash
requirements necessary to service interest or principal payments, on
debt or cash income tax payments;

Although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will often have to be replaced
in the future, and EBITDA does not reflect any cash requirements for
such replacements; and

Other companies in this industry may calculate EBITDA differently than
NRG does, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as a
measure of discretionary cash available to use to invest in the growth
of NRG’s business. NRG compensates for these limitations by relying
primarily on our GAAP results and using EBITDA and Adjusted EBITDA only
supplementally. See the statements of cash flow included in the
financial statements that are a part of this news release.

Adjusted EBITDA is presented as a further supplemental measure of
operating performance. As NRG defines it, Adjusted EBITDA represents
EBITDA excluding impairment losses, gains or losses on sales,
dispositions or retirements of assets, any mark-to-market gains or
losses from accounting for derivatives, adjustments to exclude the
Adjusted EBITDA related to the non-controlling interest, gains or losses
on the repurchase, modification or extinguishment of debt, the impact of
restructuring and any extraordinary, unusual or non-recurring items plus
adjustments to reflect the Adjusted EBITDA from our unconsolidated
investments. The reader is encouraged to evaluate each adjustment and
the reasons NRG considers it appropriate for supplemental analysis. As
an analytical tool, Adjusted EBITDA is subject to all of the limitations
applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, the
reader should be aware that in the future NRG may incur expenses similar
to the adjustments in this news release.

Management believes Adjusted EBITDA is useful to investors and other
users of NRG's financial statements in evaluating its operating
performance because it provides an additional tool to compare business
performance across companies and across periods and adjusts for items
that we do not consider indicative of NRG’s future operating
performance. This measure is widely used by debt-holders to analyze
operating performance and debt service capacity and by equity investors
to measure our operating performance without regard to items such as
interest expense, taxes, depreciation and amortization, which can vary
substantially from company to company depending upon accounting methods
and book value of assets, capital structure and the method by which
assets were acquired. Management uses Adjusted EBITDA as a measure of
operating performance to assist in comparing performance from period to
period on a consistent basis and to readily view operating trends, as a
measure for planning and forecasting overall expectations, and for
evaluating actual results against such expectations, and in
communications with NRG's Board of Directors, shareholders, creditors,
analysts and investors concerning its financial performance.

Adjusted cash flow from operating activities is a non-GAAP measure NRG
provides to show cash from operations with the reclassification of net
payments of derivative contracts acquired in business combinations from
financing to operating cash flow, as well as the add back of merger,
integration and related restructuring costs. The Company provides the
reader with this alternative view of operating cash flow because the
cash settlement of these derivative contracts materially impact
operating revenues and cost of sales, while GAAP requires NRG to treat
them as if there was a financing activity associated with the contracts
as of the acquisition dates. The Company adds back merger, integration
related restructuring costs as they are one time and unique in nature
and do not reflect ongoing cash from operations and they are fully
disclosed to investors.

Free cash flow (before Growth Investments) is adjusted cash flow from
operations less maintenance and environmental capital expenditures, net
of funding, preferred stock dividends and distributions to
non-controlling interests and is used by NRG predominantly as a
forecasting tool to estimate cash available for debt reduction and other
capital allocation alternatives. The reader is encouraged to evaluate
each of these adjustments and the reasons NRG considers them appropriate
for supplemental analysis. Because we have mandatory debt service
requirements (and other non-discretionary expenditures) investors should
not rely on Free Cash Flow before Growth Investments as a measure of
cash available for discretionary expenditures.

Free Cash Flow before Growth Investments is utilized by Management in
making decisions regarding the allocation of capital. Free Cash Flow
before Growth Investment is presented because the Company believes it is
a useful tool for assessing the financial performance in the current
period. In addition, NRG’s peers evaluate cash available for allocation
in a similar manner and accordingly, it is a meaningful indicator for
investors to benchmark NRG's performance against its peers. Free Cash
Flow before Growth Investment is a performance measure and is not
intended to represent net income (loss), cash from operations (the most
directly comparable U.S. GAAP measure), or liquidity and is not
necessarily comparable to similarly titled measures reported by other
companies.